Commerce Bank Employee in US banned from working in Banking Industry

The Board of Governors of the Federal Reserve System (US) has issued a formal prohibition order against Nicholas Sheeley, a former employee of Commerce Bank in Kansas City, Missouri. The action permanently bans him from working in any FDIC-insured bank or other regulated financial institution without prior written approval from federal regulators.

Why Employee has been banned?

Sheeley worked at Commerce Bank from January 2012 until his termination in August 2023. He served as the Deposit Services Manager from June 2019. Sheeley overcharged bank customers for check adjustment cases that involved claims from other financial institutions. He then hid the resulting losses by manipulating the bank’s general ledger and shifting funds between different adjustment cases to conceal the discrepancies. Sheeley also misappropriated customer funds for personal use by creating counterfeit checks. These actions caused the bank to suffer a financial loss of $28,500.

Federal regulators stated that Sheeley’s actions violated banking laws, regulations, and fiduciary responsibilities. His conduct was described as unsafe and unsound banking practice, involving personal dishonesty and showing willful disregard for the bank’s safety and soundness.

Permanent Ban from Banking Without Approval

Under the prohibition order, Sheeley is now barred from working in any capacity at:

• Any FDIC-insured bank
• Any bank holding company
• Any subsidiary of such companies
• Any foreign bank operating in the U.S.
• Any other regulated financial institution

He is also prohibited from:

• Participating in bank management
• Voting on bank matters
• Serving as an officer, director, or employee
• Using or transferring voting rights or proxies

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